MHIC Knowledge 4

Question 1

Under Maryland law, what is the maximum civil penalty the Maryland Home Improvement Commission can impose per violation?

Accepted Answer

$5,000

Answer

The MHIC may impose a civil penalty of up to $5,000 per violation under Maryland law.

Question 2

A homeowner pays a contractor $15,000 upfront and the contractor abandons the job. What is the MAXIMUM the homeowner can recover from the Maryland Home Improvement Guaranty Fund per contractor?

Accepted Answer

$15,000

Answer

The Guaranty Fund pays up to $15,000 per contractor for losses caused by a licensed contractor's violation.

Question 3

Which document must a Maryland home improvement contractor provide to a homeowner BEFORE beginning any work?

Accepted Answer

Written contract signed by both parties

Answer

Maryland law requires a written contract signed by both the contractor and the homeowner before work commences.

Question 4

A subcontractor places a mechanic's lien on a homeowner's property. Within how many days after the work was completed must the subcontractor file the lien in Maryland?

Accepted Answer

180 days

Answer

In Maryland, a mechanic's lien must be established within 180 days after the work was finished.

Question 5

What type of insurance is a licensed Maryland home improvement contractor required to carry?

Accepted Answer

Liability insurance and a surety bond

Answer

MHIC licensees must maintain both liability insurance and a surety bond as conditions of licensure.

(MHIC) Maryland Home Improvement Contractor Practice Test

(MHIC) Maryland Home Improvement Contractor Practice Test

MHIC Knowledge 4